I’m slated to be on again today and this Friday, October 24, at 6:00 pm Eastern.
Personal identity crisis continues. What will it take for companies to take this as seriously as they should? First, there’s a report from Georgia Tech that with cell phones getting more complicated and more connected, it turns out they are perfect targets for hackers. Just imagine a horde of cell phones being programmed to periodically dial toll numbers. They’ve even got a name: “zombie phones.”
But even more scary, officials have found small devices in European point of sale card swipe machines that send selected transaction information to Pakistan. These are the card machines you use at the grocery store — totally plain vanilla. The devices appear to be untraceable and are inserted in some made-in-China MasterCard boxes. The best way to find out if a store has been infected is to literally weigh their card swipe machines. Bad machines weigh four ounces more than good ones.
This is affecting large, chain stores, including a British unit of Wal*Mart and Tesco.
It is not isolated or off the beaten path. And it really is diabolical. The machines can be set, evidently, to just send a few transactions, say like every tenth Visa Platinum transaction, once a day. They can also get new instructions when they send their take — so their work is quite hidden. Add that up over time.
What happens to the information once it goes to Pakistan? It gets used, of course. Bank withdrawals are made, plane tickets and other merchandise get purchased. So far, the estimates are between $50 and $100 million. The motivation appears not to be a espionage, but plain old theft. Authorities are watching, though, in case there is a terrorism link, the destination being in Pakistan and all.
What can companies do? That’s a tough question and it may be one of those things where the bad guys are always one step ahead of the good guys. But the good guys can get a little more serious about this. Yes, they will say they have security experts and yes, they will say that such piracy hurts them as much as it hurts, say, Joe The Plumber. “Security is our top priority.”
Nevada has instituted new rules that companies must encrypt the information they keep. But this may not be enough. The whole data chain needs to be protected, just like the food chain.
I think I am going to start paying cash for everything I can!
Posted by bradrourke
My PJTV Segment: It’s Like The Sopranos!
October 21, 2008It’s easy to pick on the Garden State of New Jersey, almost too easy. Like shooting fish in a barrel. Former Democratic state senator Wayne Bryant, who is embroiled in a corruption trial, has asked the state elections authority for permission to use his $640,000 campaign war chest for his legal bills. The authority said no and yesterday a state appeals court heard arguments on the issue.
Bryant is accused of conspiring with the dean of a medical school to steer state money to the university in return for a no-show job that would boost his pension from $36,000 to $81,000. I’m telling you, it’s like The Sopranos! Only there’s more. Stay tuned . . . .
Bryant is not the only New Jersey state official using campaign money to pay for corruption defense. Former state Sen. and Newark Mayor Sharpe James (D-Essex) and former Sen. Joseph Coniglio (D-Bergen) used their campaign money for their legal fights – only they didn’t ask permission first.
Coniglio used $90,000 leftover in his war chest when Feds were looking into whether he took money from Hackensack University Medical Center in return for steering money to the hospital. He was indicted on that in in February. And former mayor James spent $50,000 of campaign money for his defense against conspiracy and fraud charges. He was convicted in April and is serving 27 months in prison and had to pay a $100,000 fine.
What’s incredible is that, in fact, New Jersey’s rules are stricter than the federal election commission’s when it comes to using campaign money – on the federal level, battling corruption charges is deemed to be an expense “relating to the duties of a federal office holder.”
So there’s something to think about next time you whip out your check book to support a candidate – might this guy end up using the money to defend against being a crook?